Making trade work for sustainable development: the case for partnerships Tadeusz Makulski Fair Trade Expert Function Polish Fair of Speaker Trade Association
Contents What is Fair Trade? Fair Trade in Poland Who can make trade work for sustainable development? Democracy and decision makers in trade policy. For partnerships, not only consultations.
Fair Trade A civil society movement (NGO s + consumers) for supporting a small producers (growers, craftsmen) from developing countries. Two main routes of commercialization of Fair Trade products (crafts, food, cotton). Integrated route - products are produced, imported, wholesaled and/or distributed by a Fair Trade Organizations- certified members of World Fair Trade Organization. WFTO is the global network of FTO with 476 in 73 countries. For last years products available also in main stream distribution. Product cerification route Producers who comply with Fair Trade standards are certified by Fairtrade Labeling Organization. Supply chain provided by conventional players is monitored by FLO, final products available in the main stream with Fairtrade certification mark.
Fair Trade A joined Charter of Fair Trade Principles - Market access for marginalized producers - Sustainable and equitable trading relationships - Capacity building & empowerment - Consumer awareness raising & advocacy - Fair Trade as a social contract Products certification standards - Stable prices that cover the cost of sustainable production, - A Fair Trade premium paid for local community - No illegal child labour - Prefinancing of harvests and long term trading relationships - Support of sustainable and environment-friendly production methods
Fair Trade PL Polish Fair Trade Association Pioneer of FT in Poland (2003) Promotion of Fair Trade, campaining Market capacity building Fair Trade Organization- Member of WFTO Polish Coalition for Fair Trade Informal umbrella body (2009) NGO+ Fair Trade supporting business Transformation towards marketing organization
Who can make trade work for sustainable development? - Governments (e.g. trade negotiations, legislation) Why not other actors making trade work? - Local Authorities (ethical public procurement) - Companies ( sustainability, CSR) - Citizens/consumers ( responsible consumption, Fair Trade)
Role of Local Authorities EU should promote that local authorities engage in bottom-up activities to make trade work for sustainable development. The Committee of the Regions called in an opinion of 10 February 2010 for a European Fair Trade Strategy for Local and Regional Authorities. New EU Public Procurement Directives should clearly allow in an easy way the integration of sustainable development criteria (including Fair Trade) in public procurement.
Role of companies Priority is not only CSR but sustainable business with extended range of stakeholders consisting: future generations, Earth, direct and indirect suppliers in developing countries. EU should encourage initiatives that aim at making supply chains work for sustainable development (in particular including small producers).
Role of citizens / consumers November 2010 EC report on EU citizens views on International Trade confirms: - EU citizens have a strong social conscience. - Are aware of drawbacks of International trade. - Not ready to buy a product because of its price only. Conclusion of the report: this may need to be factored into decisionmaking relating to future trade policy priorities. EU should promote empowering consumers to make purchasing decisions that will make trade work for sustainable development.
Democracy and decision-making in trade policy Trade policy is not a matter that should be far from citizens. It is about important societal and political choices. Council of Ministers discussions should be more transparent: Trade Policy Committee meetings should be public and web-streamed. European Commission receives negotiating mandates and carries out trade negotiations. The Treaty of Lisbon gave an increased role for the European Parliament, which should bring more democratic oversight over trade policy.
For partnerships, not only consultations 1) Ask for input in a timely manner: the new EU trade and development policy (2011) should have been dealt at the same time as the new EU trade policy (2010), not after. 2) Sustainability and Human Rights Impact Assessment of trade agreements must be done before the EC receives the negotiating mandate.
For partnerships, not only consultations 3) The so-called consultation with civil society should not be about ticking boxes : it should be about engaging and setting up partnerships (working together to achieve common goals). It must include and set clear objectives to achieve together common objectives: - Local authorities: to encourage best practices to make trade work for sustainable development - Companies: to encourage changes to make their supply chains contribute to sustainable development - Citizens/consumers: to promote empowering consumers across the EU to make purchasing decisions that will make trade work for sustainable development.
Thank you for your attention Tadeusz Makulski t.makulski@sprawiedliwyhandel.pl www.sprawiedliwyhandel.pl